Largo Resources Ltd. (“Largo” or the “Company”) (TSX: LGO) (OTCQX: LGORF) is very pleased to report fourth quarter and full year 2018 production results from its Maracás Menchen Mine highlighted by a new quarterly production record of 2,595 tonnes of vanadium pentoxide (“V2O5“) and record full year production of 9,830 tonnes of V2O5. Largo delivered strong operational performance in 2018 exceeding the Company’s midpoint guidance of 9,650 tonnes of V2O5 at record production rates. Management is confident in its ability to deliver continued operational success through its production and cost guidance for 2019.

Total production from the Maracás Menchen Mine in 2018 was 9,830 tonnes of V2O5, exceeding the Company’s midpoint of guidance by 2%. This represents an increase of 6% over FY 2017 and is the strongest full year of production from the mine since operations commenced in 2014. The Company also achieved a new quarterly production record in Q4 2018 with 2,595 tonnes of V2O5 produced, up 2% from the previous quarter and representing the fourth consecutive quarter of production growth during 2018.

Global V2O5 recovery rates averaged 77.0% in 2018 representing an increase of 2% over the year prior. Recoveries of 75.3% in Q4 2018 averaged somewhat lower when compared to 77.1% in Q3 2018 due to issues with kiln stability. Following the kiln refractory replacement in Q1 2019, the Company expects recoveries to stabilize throughout the year as it continues its focus on established maintenance programs and best production practices at the mine.

A summary of Q4 and FY 2018 production results from the Maracás Menchen Mine is presented below:

Maracás Menchen Mine Production

Q4 2018

Q3 2018

Q2 2018

Q1 2018

FY 2018

Global recovery2 (%)

75.3%

77.1%

79.2%

75.9%

77.0%

Concentrate produced (tonnes)

92,190

88,075

85,639

77,222

343,126

Grade of concentrate (% V2O5)

3.27%

3.48%

3.37%

3.56%

3.41%

Contained V2O5 (tonnes)

3,016

3,065

2,889

2,747

11,717

V2O5 flake produced (flake + powder) (tonnes)

2,595

2,563

2,458

2,214

9,830

V2O5 produced (equivalent pounds)3

5,721,000

5,650,000

5,419,000

4,881,000

21,671,000

Mark Smith, Chief Executive Officer of Largo, stated: “Largo’s ability to consecutively increase its production at the mine is a testament to the very skilled operations team at Maracás and has enabled the Company to exceed its midpoint guidance of 9,650 tonnes ofV2O5 for the year. We are also very proud to report yet another quarterly production record from the Maracás Menchen Mine in addition to a new record of full year production for 2018.”

He continued: “During the year ahead, Largo will continue its focus on profitability and looks forward to reaping the benefits of the increased production rate as a result of the Company’s ongoing expansion project. The expansion project to increase nameplate production capacity to approximately 1,000 tonnes of V2O5 per month is progressing on time and the Company expects to reach the new nameplate capacity rate in Q3 2019.”